No Loss in Collection of Taxes, Recorded Sale Transaction in Return of Income: ITAT Notes Sale of Car Already Taxed [Read Order]

The Income Tax Appellate Tribunal (ITAT), Raipur Bench, noted that the sale transaction of the car in the present case has already been taxed and there was no loss in collection of taxes, accordingly. The sale transaction was reflected in the return of income.

The Assessing Officer (AO) had doubted the sale of an old car as the name under which the registration was in was one on the government website and RTO documents and another in the documents submitted by the assessee which showed that the vehicle was sold. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the AO’s findings on the basis of suspicion in absence of corroborative evidences.

The counsel of the assessee responded that the new owner may have not properly completed the procedure in the RTO Office. The counsel also argued that there was no loss to the Revenue department in terms of collection of taxes as the entire sale transaction has been duly offered to tax.

Further, the counsel brought to notice that the assessee had in his return of income in ‘Schedule DPM’ at ‘Sr. No. 8’ disclosed the total consideration received from the sale of the car at INR 3,80,000/- and offered tax at INR 1,53,375/- at ‘Column No. 16’.

Considering these facts, the tribunal set aside the order of the CIT(A) and directed the AO to delete the additions. Partha Sarathi Chaudhury (Judicial Member) from the ITAT allowed the appeal on 12.03.2026.

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